Sold goods for cash of Rs 4000 on 10% Trade discount & 10% cash discount. Posting in discount account will be?

Rs 740 on debit side

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Rs 360 on debit side

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Rs 360 on credit side

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None of the above

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Solution

The correct option is B
Rs 360 on debit side

Trade discount is never shown in a journal entry. Cash discount of Rs 360 shall be posted on debit side of discount account.

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Similar questions

2019
March 5		Sold goods to Shruti for ₹ 80,000 at 15% trade discount and 4% cash discount. Received 75% amount immediately through a cheque.
10		Purchased goods from Richa for ₹ 60,000 at 10% trade discount and 5% cash discount. 60% amount paid by cheque immediately.

2017
March 3		Bought goods for cash of the list price of ₹ 80,000 at 10% trade discount and 2 $\frac{1}{2}$ % cash discount.
5		Sold goods for cash of the list price of ₹ 1,00,000 at 15% trade discount and 3% cash discount.
6		Sold goods to Nagpal of the list price of ₹ 50,000 at 20% trade discount.
8		Nagpal returned one-fourth of the above goods.
10		Nagpal settled the account by paying cash under a discount of 5%.

Enter the following transactions in a cash book with cash and bank column for the month July, 2011:

2011 July
1.	Cash in hand Rs 23,000, Bank balance Rs 14,000.
2.	Cash sales Rs 8,500 at 10% trade discount.
4	Purchased goods for cash Rs 10,000 at 10% trade discount and 5% cash discount. Half the amount was paid in cash remaining by cheque.
7.	Deposited into bank Rs 8,000.
9.	Received on account a bearer cheque from Sameer for Rs 9,550 and discount allowed to them Rs 25.
12.	Sold goods for cash Rs 8,000 at 4% trade discount.
15.	Paid Life Insurance Premium Rs 3,225.
18.	Cheque received on 9 July 2011 deposited into the bank.
20.	Withdrew from bank for office use Rs 7,000.
22.	Received a crossed cheque from Prabhu for Rs 4,670 in full settlement of his account Rs 4,700.
27.	Introduced additional capital Rs 15,000 and deposited the same into the bank.
28	Received a cheque for dividend Rs 6,245.
29.	Paid electricity bill Rs 2,000 and telephone bill Rs 4,100.

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